- Switzerland will increase its value added tax (VAT) rates from 1 January 2024.
- The new rates are as follows: the standard rate will increase from 7.7% to 8.1%, the reduced rate will increase from 2.5% to 2.6%, and the special rate for accommodation will increase from 3.7% to 3.8%.
- The applicable VAT rate is determined by the time the service is rendered, and services rendered until 31 December 2023 will be subject to the current rates.
- Cross-period services may already have to apply the new rates, and if services subject to both current and new VAT rates are listed on the same invoice, they must be invoiced separately.
- If a service or maintenance contract extends beyond the date of the VAT rate increase, the remuneration must be allocated on a pro-rated basis to the current and new VAT rates.
- In the VAT returns of the third quarter of 2023 and the month of July 2023, turnover can be declared at both the previous and new VAT rates.
Source KPMG
